Nigerians pay more for bread on 14% increase in price of flour

The price of bread, a staple food for most Nigerians will likely shoot up in the days and weeks to come, following a 14 percent increase in the price of flour, its major component, BusinessDay investigations show.

The price of sugar, another ingredient for bread, has likewise increased by about 50 percent.

Market watchers say this will cause some discomfort to millions of bread consumers who favour the staple for its taste, affordability and the fact that it can be eaten without being cooked or otherwise processed.

They add that consumers would then be forced to buy bread at higher prices or seek affordable alternatives.

Although consumers are still buying bread at the current price, Jacob Adejorin, Chairman, Master Bakers and Caterers of Nigeria (AMBCN) says the incease in the cost of flour which has likewise increased the cost of production, will have to be transferred to the consumer.

Adejorin said, “The price of all the flour, with exception of that from Standard Flour Mills, increased last week Monday, from N7,000 to N8,000 and N8,100 in some places. We are yet to hear from Standard Four Mills but this did not affect the price of our bread. Our prices still remain the same for now.”

A manager at a bakery in Ajao Estate in Lagos State, who does not want his name and the name of his bakery in print said, “We only increased the price we supply to supermarkets and hotels from N200 to N220 but the price for other customers is still fixed at N250. As a young bakery, we don’t want to start losing our customers but with time, our price will increase.”

Market monitor in Lagos shows prices increasing between 15 to 17 percent on flour.

BusinessDay market assessment at Mushin market on Wednesday, showed that a bag of flour now sells for N8,400 against N7,200 while there is also a sharp increase at Oshodi market, where a bag of flour now goes for N8,200 as against N7,100 a few weeks ago.

Similarly, the price of a bag of sugar has gone up to N9,300 from N6,700 at Mushin market in Lagos and N9,000 from N6,600 at Oshodi market.

A trader in Mushin market, who acknowledges the increase in the price of flour, attributed the development to scarcity of foreign exchange.

“It’s not only flour, even sugar has increased. I used to buy flour for N6,600 a bag and sell for N7,200 but I bought these bags of flour for N8,100, so I sell at N8,400. They say it’s because of the dollar problem”, she told BusinessDay.

Another seller at Oshodi market expressed concern that the price increase in flour would lead to a fall in sales.

“I bought flour at N8,100 instead of N7,000 and sell at N8,200. When it was N7,000, my customers were complaining, now that it has increased this much, maybe they might change their line of business”, she said.

BusinessDay gathered that the price of bread has already increased in PortHarcourt, Rivers state.

Consumers who spoke with our reporter, say they now eat less bread due to the price hike.

Ugo Okocha, a banker in PortHarcourt said, “The price of bread here increased from N250 to N300. I only reduced my rate of purchase to one loaf a week, as against four. Since we don’t eat bread every day now, we can manage.”

“For a family of seven children, we eat bread every day. It’s easy for breakfast, to prepare the children for school. I normally buy bread every day but I have to start buying three times a week now. Other mornings, we eat rice or indomie”, Udoh, a businessman in Lagos said.

Another resident in Ajao Estate area of Lagos said, “We use to eat bread five or six times a week, but now it’s once, because of the price. The days we don’t eat bread, I buy a N300 tuber of yam. Five people can eat the yam for breakfast and be filled.”

Meanwhile, some bakers in Niger state say they might either embark on strike or close businesses on account of the hike in the price of ingredients for bread.

Also, the Master Bakers Association in Kano has embarked on strike over the hike in the price of flour.

Kabiru Hassan, Public Relations Officer (PRO) of the Kano Master Bakers told reporters on Wednesday that members deemed it necessary to embark on the strike due to increase in the price of flour and other ingredients involved in  bread production.

“I can confirm to you that no one is selling bread right now in Kano State,” Hassan told reporters.

CHINWE AGBEZE